Co collected amount without valid registration

Market regulator SEBI on Friday ordered attachment of all bank accounts of MPS Greenery Developers in order to recover Rs 1,520 crore. These accounts are held in UCO Bank, Oriental Bank, Canara Bank, Bank of India, IDBI Bank, ICICI Bank, HDFC Bank and Axis Bank.

SEBI directed that no debits should be made from any of these bank accounts until further orders. However, making credits have been permitted.

In December 2012, SEBI had directed MPS to wind up its collective investment schemes (CIS) and refund the money collected with interest to investors within one month.

SEBI found that MPS had collected approximately Rs 1,520 crore, without any valid registration. It had ignored the specific prohibition issued by SEBI not to raise any money in any new or existing schemes.

The regulator said it had sufficient reason to believe that MPS may dispose of the money held in the bank accounts and this would delay recovery of the amount.

All accounts held by MPS singly or with any other person, including lockers, have been ordered attached. This also includes present and future money due to the accounts.

Banks have been directed to provide details of lockers, loan accounts and account details for the last one year besides confirming that the accounts have been attached.

(This article was published on October 25, 2013)
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